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Submitted to: Dr. Pampari Venkataswamy

Submitted By: TARUNA CHAWLA Enrol.No.-08BSHYD0892 Section-B


1. Executive Summary ------------------------------------------------------------------------- 3

2. Scope of the Project------------------------------------------------------------------------- 4

3. Introduction----------------------------------------------------------------------------------- 5 4. Process of performance appraisal---------------------------------------------------------- 6 5. Purpose of performance appraisal--------------------------------------------------------- 7 6. When and Who to conduct appraisals------------------------------------------------------ 8 7. What is to be evaluated----------------------------------------------------------------------- 8 8. Elements of an effective appraisal system--- ---------------------------------------------- 9 9. Corporate outlook-------------------------------------------------------------------------------10 10.Conclusion------------------------------------------------------------------------------------- 21 11.References-------------------------------------------------------------------------------------- 22


This project report is a review based on theory as well as the industry outlook of performance appraisal system of the organization. The report starts with the Introduction and Literature Review of performance appraisal system that outlines its history, definitions, purposes, types, process, methods, appraiser, parameters of evaluation and the essentials of an effective appraisal system. Further the performance appraisal system of three companies Bharti Airtel, Kroll Inc and Cocoa Research Institute of Savana, collected through various primary and secondary sources have been included in the report which gives a fair idea of the kind of appraisal system being followed across various corporates. Last, the conclusions and references has been mentioned.


The project gives an outline of what performance appraisal is and how it should be conducted, defining the process of appraisal, the person who should be involved in the process and wat should be the criteria involved in appraisal. The data has been collected fro various websites which have been mentioned in the references. The methods of appraisal have not been included in the report confining to the word limit and the practical aspect of the topic has been taken care by giving information about three corporates that are Bharti Airtel, Kroll Inc and CRIS.



I. Background:
1. The concept of Performance Appraisal dates back to the First World War and was then called Merit Rating Programme. Over a period of time, this concept has been through an ocean of change. The areas of evaluation have also changed. 2. According to Carl Heyel, author/editor on management, philosopher and teacher, performance appraisal is the process of evaluating the performance and qualifications of the employees in terms of job requirements, for administrative purposes such as placement, selection and promotion, to provide financial rewards and other actions which require differential treatment among the members of a group as distinguished from actions affecting all members equally.

II.Change: 1. A few decades ago, the employee used to be appraised by his department head. The department head used to communicate his feedback and comments only to the immediate superior of the employee. Thus the feedback was kept confidential in nature. As time passed by, the immediate superior started appraising his subordinates performance and sending his confidential report to the department head. These were the periods when the employee was not included in his appraisal process. The decisions used to be taken by his superiors relating to his pay hike, promotion etc. Thus the system was non-transparent.

2. The current process of performance appraisal is much more open and gives some scope for self-appraisal by
the employee. The self-appraisal is followed by a joint discussion with superior and then a decision is taken by the department head on his promotion, pay hike etc. The feedback relating to his performance is directly given to the employee. Thus performance appraisal process has gone through the phase of non-transparency to transparency.



The objectives of performance appraisal fall in two categories: 1. Administrative 2. Self-improvement

1. Administrative Objectives

(i) Promotions: This is the most important use of performance appraisal. It is to the common interests of
both the management and employees to promote employees into positions where they can most effectively utilize their abilities.

(ii) Transfers: In an organization, it may be necessary to consider various types of personnel actions such as
transfers, layoffs, demotions and discharges. Such actions can be justified if they are based on performance appraisal.

(iii)Training & Development: An appropriate system of performance appraisal can be

helpful in identifying the areas of skills or knowledge in which certain employees are not up to par, thus

pointing out general training deficiencies, which presumable should be corrected by additional training, discussions or counseling.

(iv)Wage and Salary Administration: In some cases, the wage increases are based on the
performance appraisal reports. In some cases appraisals and seniority are used in combination.

1. Self Improvement Objectives The system allows the employee to evaluate his performance, identify the areas which he finds need improvement and based on his personal assessment, take the steps he feels are necessary to improve his performance.


Appraisals typically are conducted once or twice a year, most often annually. For new employees, common timing is to conduct an appraisal 90 days after employment, again at six months, and annually thereafter. Probationary or new employees, or those who are new and in a trial period, should be evaluated frequently perhaps weekly for the first month and monthly thereafter until the end of the introductory period for new employees. Performance appraisals can be done by anyone familiar with the performance of individual employees. Supervisors who rate their employees Employees who rate their supervisors Team members who rate each other Employees self-appraisal


The criteria for assessing performance can be: a. Quality & Quantity b. Timeliness

c. Cost Effectiveness d. Need for supervision e. Interpersonal impact f. Innovation & Creativity g. Problem Analysis h. Customer orientation i. Market Orientation j. Entrepreneurial Drive This is not an exhaustive list, but several other parameters too can be added depending on job requirements and organizational needs.


Use of an appraisal system that is job-related and understandable. Clear instructions and training for performance raters. Performance-rater familiarity with the nature and importance of job duties on which employee is being rated. Clear identification of standards by which performance will be measured Scheduled, periodic reviews. Objective measurement (excellent/good/fair /unacceptable) if the employee is meeting performance standards. Future action plan. Precautions against improper bias by raters.




BHARTI AIRTEL (Primary data) KROLL INC (Primary data) CRIS (Secondary data)

Bharti Airtel is India's largest cellular service provider with more than 79 million subscribers as of November 2008.It offers its TELECOM services under the Airtel brand and is headed by Sunil Mittal. The company provides fixed line services, broadband services, telephone services and Internet access. The company complements its mobile, broadband & telephone services with national and international long distance services.

Timing of the Performance Appraisal System As per the company policy, Appraisals are conducted on annual basis where either monetary appraisal or position appraisal pr both is done. All the employees are informed through mails and are asked to fill a KRA SHEET (Knowledge Resource Allocation) If in case there are any unusual circumstances, appraisal can be done in once in 6 months also.

Appraisal Method- The method used is work standard approach. The steps involve1. Self Appraisal- first the employee given the form to fill and rate himself on the performance and work objectives fulfilled. 2. Then the immediate appraisal is done by the Reporting manager. The manager conducts a meeting with every employee, verifies the data filled by him and calculates the scores for the performance.

3. Regional HR- The form is submitted with regional HR head of the company who furthers add information about the employee (no of leaves taken etc) and gives his remarks and recommendations for the appraisal. 4. The final form is sent for appraisal to Corporate Office. The copy of the original KRA SHEET of BHARTI AIRTEL is as follows:

Performance Management System Docket

Half year April 07 - Sep 07 Performance Planning / Review Form Employee Name Designation / Department Employee Code / Band Business Unit / Circle Performance Planning Half Yearly Performance Review Details of Achievemen ts / % Shortfalls / Scor achieveme Learnings e nt vs (**) ( To be (To target (To filled in by the be be filled employee. fille by the Please attach d by Reporting relevant HR) Manager) documents wherever possible)

Key Objectiv es / Strategi es / Projects

Measure(s )/ Measure(s ) of Completio n (KPI)


Weighta ge

Fi na nc ial

Enabling growth of LDS business

CCR on backbone for the whole year %age overflow calls on Backbone Projection of E1's for augmentin g on BB



< 6% Projection made by 1st week of every month and ordered placed for atleast 60% of projected wherever

10 10

feasible Providing required information within 24hrs for 80% of logged cases Verify the availablity of free KLM's and send 99% of orders to TE with in 24hrs Verify the resources,r aise the order and implementa tion with TX assistance with in 48hrs for 60% of cases. Deactivatio n orders raised and sent to Prov with in 24hrs Provide the reports of status of Internal orders to all concerned on daily basis. Implementa tion of 70% cases with in 20days Audit score of > 85%

Vendor escalation for switch related problems

Enabling Custome r Delight

Metasolv Order Manageme nt for Switch orders


Cu st o m er

Manageme nt of Link Shifting & Deactivati on Orders


Status update of Internal Orders

Pr oc es

Awarene ss of Company

Diversifica tion of E1's where ever 50% of BB gets affected Awareness of Quality

s Pe op le & Or g De ve lo p m en t

process and policy Self developme nt using E learning Completion of 2 modules using Elearning


Yellow Belt projects

Completion of 2 YB


% Achievemen t Name, Signature & Date Employee Reporting Manager Employee Reporting Manager

Source: RAMAKRISHNA KAKUMANI, Team Leader Technical, 20 Months experience


Kroll is a global risk consulting company headquartered in New York. Since its founding in 1972 by Jules B. Kroll, the company has expanded beyond private investigation and security services into all areas of corporate risk mitigation including background screening, business intelligence, market intelligence, forensic accounting, electronic discovery, and data recovery, among others. It is a subsidiary of Marsh & McLennan Companies.

Timing of the Performance Appraisal System Appraisals are conducted 4 times a year i.e. after every 3 months The first 3 appraisals are more of a feedback and pay increase is done at the end of the year after the 4th appraisal is done. At the end of the year bonus is given which is the cumulative result of all appraisals done in the year. If in case there is any

Who conducts the Appraisal? The immediate appraisal is done by the floor manager. The manager is given the form to fill and rate the employee. This followed by the 360 degree approach wherein the colleagues, subordinates and superiors are given the form to fill and rate a particular employee. In the end an overall rating is taken and appraisal is done on the basis of that rating.

Methods Used

Kroll Inc. follows Category ratings method. The appraisal is done in the following two ways: 1. Graphic rating method: In this method the employees were rated on certain parameters which marked an employees performance on a continuum. This is basically done for performance appraisal. PARAMETERS TASK ACCOMPLISHMENT PROBLEM SOLVING DECISION MAKING TEAM WORK COORDINATION GRADES ALLOTED

The company uses 4 point rating scale: Below expectation/A; Met most of the expectation /AA; Met all the expectation/AAA; Met &exceeded expectation /AAAA OVERALL PERFORMANCE.. This is: Poor, satisfactory, good and excellent.

RECOMMENDED FOR APPRAISAL. Yes/No Date Signed (RATER) 2. Checklist method: In this method employees are checked on the basis of their

characteristics, where each of them has a weightage based on which an overall score is calculated. This is done basically as means of potential appraisal. PARAMETERS POSITIVE ATTITUDE ADAPTABLE TO CHANGES EFFECTIVE TEAM MEMBER GOOD LISTENER HELPS PEERS RATING YES/NO YES/NO YES/NO YES/NO YES/NO



SOURCE: PRATEEK CHOPRA, Background Screening Analyst, 6 months experience.


The Cocoa Research Institute of Savana (CRIS) was originally called the Central Cocoa Research Station of the Department of Agriculture, and was established in 1937. It is a research institution, with a long tradition of thorough scientific study. It has well qualified research staff and has most of the facilities and equipment required for effective work with the soul focus on research and scientific activities related to cocoa.

TECHNICAL STAFF: Progression from Technical Assistant Grade III to Senior TA usually takes a minimum of 15 years. Promotion to Senior Technical Officer is by screening and selection. Thereafter, at each level, one has to spend a minimum of 5 years. Promotions to higher levels are further constrained by availability of vacancies. RESEARCH STAFF: Progression from Assistant Research Officer to Research Officer requires a minimum of 3 years and gaining a second degree. Thereafter, it takes a minimum of 12 years to move to the position of Chief Research Officer. All promotions are subject to availability of vacant positions EVALUATION REPORT -To be completed by Head of Division and signed both by Head and staff member assessed. 1. Name (Full) Suzene Kopec Age: 39 years 2. Date of first appointment: 21.6.71 3. Date of present appointment: 1.10.81 Station: Tofa 4. Present salary: NSc 133 320.00 p.a. Tech. Asst. I 5. Was any warning or disciplinary action taken against the officer during the year? No.

6. Brief description of duties performed: Technical Assistant Grade I in charge of the Main Nursery Activities. PART I to be completed by the most senior office in immediate contact with the officer

concerned, being of a grade not below. WORK ASSESSMENT- Graphical Rating Method GRADES: O = outstanding; AA = above average; A = average; BA = below average; NO = not observed. Assessment period; grade; duties 1971/75; TA III; personal assistant, data retrieval including some statistical calculation and assisting in field 1975/76; TA III; labeling and field recording AA AA AA A of vegetative measurements in progeny trials, some time on numerical data in office 1976/77; TA 11; supervision of nursery preparations, field recording, data handling in office 1977/80; TA II; nursery work in connection with progeny trials 1980/81; TA II; field recording (growth and reproduction) 1981/82; TA I; same 1982/83; TA I; scoring of flowers 1983/84; TA I; in charge of work in the greenhouse and nurseries 1984/85; TA I; in charge of the main nursery A 1985/87; TA I; in charge of the nursery A BA A A A A BA BA A A A A A A BA BA A A BA A A A BA BA A A A A A A A A A A A A AA AA A A A AA BA BA A A A AA AA A A AA 0 BA A A A A AA 0 BA A AA A 1 A 2 3 4 5 6 7 8 9 10 11 A A







CONDUCT ASSESMENT Graphical Rating Method A = Outstanding; B = Very good; C = Satisfactory; D = Below Average; E = Poor WORK AND CONDUCT (a) Knowledge of work (b) Ability to work without supervision (c) Initiative (d) Sense of responsibility (e) Capacity for cooperation (f) Supervisory ability (g) Attendance (h) Punctuality (i) Health (j) Willingness to undertake extra duties Signed. (Supervisor) Date: EMPLOYEE APPROVAL I certify that the above is a fair/unfair assessment of my work and conduct. As I have reached my maximum since three years now (Signed) Signature of officer assessed Date: GRADE REMARKS B B C C B A B C B C

PART II (CONFIDENTIAL): to be completed by Head of Division

Overall Grade (A - E): B Give final remarks in the space below, indicating: ( Checklist method) (a) Recommendation for increment (b) Recommendation for special commendation (c) Well qualified for promotion out of turn (d) Qualified for promotion in normal turn (e) Doing well, but requires more experience (f) (i) Not at present suitable for promotion for other reasons (ii) Not at present eligible for promotion (g) Recommended for increment Signed.............. 10 Additional remarks indicating views of staff assessed on Part I (if any) YES/NO YES/NO YES/NO YES/NO YES/NO YES/NO YES/NO YES/NO

SOURCE: http://www.fao.org/docrep/w7505e/w7505e07.htm


Performance appraisal is the process of reviewing employee performance vis--vis the set expectations in a realistic manner, documenting the review, and delivering the review verbally in a face-to-face meeting, to raise performance standards year over year through honest and constructive feedback. In the process management expects to reinforce the employees strengths, identify improvement areas so that one can work on them and also set stretched goals for the coming year.

Effective performance management requires a good deal of face-to-face supervisor-employee interaction. By knowing the subordinates, a supervisor can steer them onto a path of greater productivity and optimized output. It is one of the most significant and indispensable tool for an organization as it helps in getting to know the people who work for them. provides information, which helps in taking important decisions for the development of an individual and the organization.


1. http://www.performance-appraisal.com/intro.htm 2. http://www.scribd.com/doc/2918255/PPTPerformance-Appraisal 3. http://www.fao.org/docrep/w7505e/w7505e07.htm

4. http://www.sideroad.com/Human_Resources/employee_performance_appraisal.html 5. http://www.wikipedia.com